Jameson Resources (ASX:JAL) is focused on the identification and acquisition of strategic coal projects in Western Canada and Australasia.
The company has entered into an option agreement to acquire the Crown Mountain Coal Project in the Elk Valley region of south-east British Columbia. Two significant metallurgical coal operations are located within 20km of the project area.
Jameson Resources updates Basin Coal Mine Project status
Jameson Resources (ASX: JAL) has received notification that formal documentation to amend and extend the Option to Purchase agreement relating to the Basin Coal Mine Project with Project vendors Compliance Energy Corporation (CVE: CEC), could not be concluded due to the failure of Compliance Energy to secure certain waivers from Pacific West Coal Ltd (PWC), the lease holder.
Jameson now retains no interest in the Basin Coal Mine project which is located 300 km east of Vancouver near the town of Princeton, British Columbia.
Norwest Corporation has also delivered a draft interim report on work it completed up until Jameson’s decision to suspend the Basin recommissioning study on April 23.
As reported on June 1, the Agreement was amended such that there will be no further consideration payable by Jameson in the event that it elects to exercise the Option to acquire the Basin Coal Mine Project. This would have provided the company with an opportunity to conduct further exploration.
The draft interim report shows that the project economics were severely impacted by increased operating costs largely as a result of projected processing efficiency being considerably less than that reported from the previous operations conducted at the project.
In addition, project economics were affected by adverse movements in the USD/CAD exchange rate.
Jameson’s Executive Director, John Holmes, said the company will retain its focus on the coal sector in Western Canada and is currently evaluating several metallurgical and thermal coal opportunities.
The remaining 10 million performance shares issued to the shareholders of NWPC Pty Ltd will not convert into fully paid ordinary shares as completion of milestones associated with the Basin Coal project will no longer be achieved.
All 4.8 million Director options which were issued in 11 December 2009 with similar performance based vesting conditions relating to the Basin Coal Project will not convert into fully paid ordinary shares.
